India Trade Deal Marks Start Of New Era

The government has used the formal signing of the UK-India trade deal to claim that the agreement will secure thousands of British jobs and billions in exports, as leaders of both countries met to put pen to paper on the much-heralded deal.

Yesterday (23 July), UK prime minister, Sir Keir Starmer, met with his Indian counterpart, Narendra Modi, for the signing of the deal.

The government claims that this will boost UK GDP by £4.8bn every year, with a collective wage increase of £2.2bn each year.

Tariff win

Among the benefits of the deal is a reduction in tariffs. The Department for Business and Trade (DBT) claims that this reduction will increase UK exports to India by 60% in the medium term.

Starmer said:

“Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.

“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”

Reacting to news on the signing of a Free Trade Agreement (FTA) with India, William Bain, Head of Trade Policy at the BCC, said: 

“The signing of this agreement is a clear signal of the UK’s continuing commitment to free and fair trade. 

“It will open a new era for our businesses and boost investment between two of the world’s largest economies.  

“Key UK sectors which are expected to benefit include food and drink, industrial goods and automotives. Not only will they see lower tariffs now, but there will be further reductions over the next decade, creating stable conditions to expand UK exports to a fast-growing market. 

“Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that.  

“A stronger UK-India relationship also creates huge scope to raise our services exports, which already outperform our sales of goods. This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.” 

Richard Heald OBE, Chair of the BCC’s sister Chamber in India, the UK-India Business Council (UKIBC), said:

“The UK-India FTA marks a historic milestone in the bilateral relationship. Businesses across both countries have long called for an agreement that reduces barriers, enhances market access, and creates a clear framework for long-term, sustainable growth.

“We congratulate both governments for their commitment and ambition in bringing this complex negotiation to fruition. Success in the FTA will support further economic growth for the world’s 5th and 6th largest economies. It will catalyse collaboration in other areas too. 

“UKIBC, and more broadly British businesses, recognise that a successful FTA is a critical milestone in a longer-term journey and are keen to support India’s ambitions. As a trusted partner to both governments and businesses, UKIBC has actively supported the FTA journey through consultation, policy input, and sector-specific insight.”